OfflineSomeone from the DG team said to overcome the fact that we don't have an actual house yet, list another investors house and if it sells get a predetermined fee. But what do you say to the caller that just saw your sign/ad that says "we buy houses any condition" and their house is totally upside down - they owe way more than its worth and you really can't help them? Thanks in advance for your help with this.
__________________
I ran across the same problem. I found a short sale specialist at one of the REIA meetings. We made an arrangement that she pays me a fee for finding any deals like the one you mentioned. Of course, the fee is only paid to me if she's able to help the people and make a profit. She also offered to show me the short sale ropes. Free training and getting paid. Not a bad deal. A mentor of mine said never let a deal die - there's always someone that can help a person in need. It just takes a little dilegence and fortitude. Good luck
If you don't want to be involved with short sales, you can't help.
That's what you tell them.
I have talked to many people with upside/down houses, and they have all been very understanding of what I do.
When you ask them if they would accept the payoff, you will find out if this is a deal you can work with.
If they are way upside/down or in foreclosure, just be friendly and reassure them that MANY people were caught in the same tragic situation. Let them know you will have to do some research and get back to them if you can help.
Most of these people understand that you can't buy a house that's not worth what you paid.
Hope this helps.
Thanks, Ben
Tony, you really can't help them unless you want to do a short sale. Had to short sale my own house last year. If its worth less than you owe and you want/have to sell it then it's a short sale. It is what it is. I lost a lot of money and I had to do it. Now I know better and I never, ever trust anyone else figuring the comps for me. A realtor figured the comps and I trusted them. What a mistake! They were off over 100k. I know better know.
Jersey Jer at the Jersey shore
It all comes down to their motivation and flexibility. Some people are just simply unrealistic. If they are unwilling to budge, doesn't leave much room to work.
In regards to the short sale comments, well I've done 2 short sales (BOA & Wells Fargo) and enough to know I'd prefer a root canal hands down OR any medical procedure done without anesthetic would be more pleasant! It's definitely NOT my niche. I partner it off now. lol
Just because some one is upside down you can structure a deal if the sellers are willing and open to creativity. since most people make a decision to purchase based on what there monthly payment will be and if you are able to bring a tenant buyer that is willing to pay it. You can structure something. Opens up to ton of possibilities such as: Lease Options, Sandwich Lease Options, if not enough room to meet your cash flow criteria and for you to be 'in' the deal, you can wholesale it and collect a fee on the front end (mortgage payment assignment), land contracts, owner financing, etc. all the above are based on what the parties involved negotiate and settle on. Meaning don't have to depend on appraisals, inspections, etc. to get financing, doesn't really matter about the current as-is price, FMV, etc. because you are selling in a LO scenario at predetermined amount for a future date. Then if something prevents them at the time to exercise their option (property hasn't met the market again, buyer needs a little more love to their credit - lol, etc.), they can vacate or renew/extend the contract.
(o.k. Jen's legal disclaimer: seek legal council on strategies that may or may not meet your state laws, guidelines and restrictions)
When I get leads for properties that I find out are over encumbered, I simply will yes give them a cash price if the want (but most can't bring to close the amount to clear title - so no go) will lay all the possible options for them to consider. (yes, even that of short sale, to deed in lieu, to foreclose that I simply say any of these options I'd suggest you seek your own legal council to assist them in making your best possible decision that meet their needs)
But I also tell them straight, "I can step in and take over your debt and take this burden off you, I can get you out from under the weight of this house, I can stop the foreclosure, etc.. I will agree to your price but in order for me to do that and make it happen, I need these terms." Then I lay it out any and all possibilities that will make sense. Either it's a deal or a dud. But it's THEIR choice. If they aren't willing, I leave it with "if your situation or circumstances change, give me call"
We can only offer, it's up to them to help themselves out of a hole.
Most people can't think outside the box because they don't even know they are in one!
Can't get emotionally involved, never fall in love with a property.......fall in love with the numbers!
I do buy 'any condition' but the deal has to make sense and bottom line the number have to work for me.
Blessing,
Jen